April 15, 2019 Video Board Meeting
Transcript
AGENDA:
Board of Directors Meeting
Monday, April 15, 2019, at 6:00 p.m.
7404 Yorkshire Drive, Castle Pines, CO 80108
1. Call to Order Regular Meeting/Pledge of Allegiance.
2. Roll Call/Announcement of Quorum/Disclosure of Potential Conflicts of Interest.
3. Consider Approving the April 15, 2019 Board Meeting Agenda.
4. Consider Approving Minutes of the Regular Board Meeting of March 18, 2019.
5. Opening Public-Comment Period. (3-minute maximum per person)
6. Open Space Manager's Report.
7. Legal Counsel's Report.
8. District Manager's Report.
9. Board Action Items.
A. Consider adopting a schedule of four separate, automatic, $2,500 Renewable Water Investment Tap Fee increases, between Tuesday, April 16, 2019 and Tuesday, December 31, 2019, the totality of which would bring CPNMD's new Renewable Water Investment Tap Fee, for developers, in line with those of neighboring jurisdictions and thereby increase the degree to which new residential and commercial development would pay for itself. B. Consider Financial Report and Items from Finance Director. C. Consider approving/ratifying current payables for March 2019, including check numbers 24255 - 24313.
10. Directors' Matters.
A. Parks Authority Update
11. Closing Public-Comment Period. (3-minute maximum per person)
12. Adjourn
Describer:
The video starts on a graphic with a white background and forest green letters. ìCastle Pines North Metro District Board Meeting November 18, 2019.î The meeting opens with board presidents David McEntire, Chuck Lowen, Denise Crew, and Chris Lewis.
Board President David McEntire:
Good evening everybody. Welcome.
For those online that are joining us, thank you for tuning in and for those in attendance tonight, if you will accept the invitation from myself and my colleagues to, say the Pledge of Allegiance and get this meeting started. I would appreciate it.
Describer:
The board members and the audience rise from their seats and recite the Pledge of Allegiance, as the camera pans from left to right from the board to management staff to the audience and back to the board. When they are done, they sit down again.
All Speak:
I Pledge of allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all.
Describer:
Board members discuss off-mic.
David:
Again. Welcome, everyone. This is, the board of Directors meeting on Monday, April 15th, 2019. It's, just a here past 6 p.m.. I'd like to, called meeting to order. We've, sighted the Pledge of Allegiance. Again, thank you for that. I'm going to call roll of my colleagues for the record. To establish a quorum and, disclose any potential conflicts.
So, when called upon. Please indicate whether or not you have any conflicts. If so, disclose those. Otherwise, I here will get you noted, as being, on time and present.
Board Member Director Denise Crew:
Denise Crew. Present. No conflict.
Board President Chuck Lowen:
Chuck Lowen. Present. No conflicts.
Board Member Director Chris Lewis:
Chris Lewis. Present. No conflicts.
David:
And I, David McEntire, am here without any conflicts as well.
We have one absent Robert Merritt. I don't know where he's at, so I have to believe he's stuck without phone service in the air somewhere. But if he walks in, he's certainly welcome to. Item #3 Is the consideration by this board to approve the April 15th, 2019 board meeting agenda. Each board member has had this, for a week now and has made the adjustments, I believe, and are all inclusive.
I can I get a motion from one of my colleagues to approve the agenda for tonight.
Board Voting All Speak:
I make a motion that we approve the agenda for the Monday, April 15th, 2019 board meeting. Is there a second? I second it. We've got a motion and a second by Directors Lowen and Lewis. Any further discussion on the matter? Hearing none. Vote. If you would, when called upon Chris. I. Director Lowen. I. And Crew. I.
David:
Motion passes unanimously. Item #4. This is, consideration by this board to approve the minutes as written, and rewritten, of the regular board meeting of March 18th, 2019. I know that you have had it along with your packet for some time and have made the necessary adjustments, unless we're missing any.
Can I get a motion from a colleague to approve them?
Board Voting All Speak:
I make a motion to approve the minutes. And a second? I'll second that. Chris has made a motion to approve those regular board meeting minutes of March 18th. Mr. Lowen has second him. Without any further discussion or call for vote. Denise. Approved. And Chuck. Approved.
Chris Lewis. Approved.
David:
Super. McEntire's vote for approval as well. And so the motion passes unanimously. Item #5 is a open public comment period. I have not been privy. I am now being provided.
We are honored to have amongst us, City Councilwoman Deborah Mulvey. And she has asked. I don't believe officially, but, certainly as a resident. Is that true? Yes. To, provide the entertainment for her to make a comment.
Describer:
Camera pans and zooms to City Councilwoman Deborah Mulvey.
Deborah Mulvey, City Councilwoman:
Maybe a little later on that one. You know, I come as a private resident, but I'm also on the board of the Parks Authority with Miss Crew as one of the governmental entity representatives.
And I'm also a councilman. I speak privately, but I know that the city is also proud. We want to thank the metro district for the land and the labor, and what was involved in putting the children's playground equipment in. It was a wonderful event. The fact that you donated the land and that you had it here was very much appreciated by all, by the city.
And I just want to thank you for that. So.
David:
Thank you. Deborah, could you could you, or, Denise, maybe share with the audience who more specifically, who the recipients of that special piece of equipment, was or is.
Deborah:
Yeah. It began as a project by third graders at Timber Trail Elementary. The teacher's name is Michelle McCluskey.
She also has an assistant who works with her. And they do the, project to create, playground equipment for that is inclusive of our children. And they chose to include, children on the autistic spectrum. Autism spectrum and their project included a ground up process of what might be inclusive for them, what we can do to include them and make them feel more comfortable in a placement playing environment.
Last year, they came up with, two different types of equipment, and the Parks Authority and the Timber Trail Teachers Association funded that, and it was again put in a Coyote Ridge Park this year. It was a bigger, piece of equipment. It's a net climber. It's also helpful for children with physical disabilities because it has seats where they can, play.
So now Coyote Ridge has a whole area that is helpful for kids of normal abilities or regular abilities, as well as where autism spectrum children can either play inclusively and have that tactile experience, or sit off to the side in the cups and have a more removed experience and feel enveloped. So that was the whole, project. And so the teacher brought it to the Parks Authority, and the Parks Authority funded the money and transferred it over to the Metro District.
And the Metro District did the installation and all of the logistics of getting it in, as well as donating the land. Both years.
Describer:
David asks Denise for any additional comment as the camera pans to her.
Denise:
The only thing I'd like to add to that, we went to, presentation by the third graders at Timber Trail last October, November, where they presented some equipment, choices for us to look at.
And they went through their, a whole background of how they arrived at this project. And they did a pretty intensive study of, special needs kids, autistic spectrum, that sort of thing. So we, had, I think three pieces of equipment to choose from. This one fits the best. So we went with it and it looks great.
And I think it's a great piece of equipment and a nice addition to our park.
Describer:
Camera pans to David.
David:
Thank you. Yes, thank you for that. I, as you may know, have had. Kind of cheated. The grand opening or the ribbon cutting because my daughter Brooke is, in Mr. Gestures class. Who is, Miss McCluskey's a colleague and partner in the third grade.
And so I've gotten a blow by blow over the last handful of months of the competition, and it was heated. Yeah, they were very passionate about it. And so it was a great deal of fun. And so for you guys that pulled that together and pulled it off, kudos to you. I'm sure that the district, personnel and, Craig, as well as his gym, albeit behind the scenes, until Saturday, where Jim stole the stole party from Craig or something of that nature.
I don't I don't remember what the story was, but, did a heck of a job in in presenting it to the public, and, the pictures were great. So thank you. Craig and Jim, for your participation in that. And Denise and and Deborah, you guys, really did a wonderful thing. Chuck said the only problem he had with it, I think it was Saturday night.
He texted me was that he had fallen, off of it when he was playing on it. And but he's he looks like he's he's doing alright now, so, thank you again.
Describer:
Camera zooms from David with Chuck now in view and then pans to the crowd, and then back to the Board after Chris speaks, then zooms in on him.
Deborah:
Well, thank you and thank you for your daughter as well to participate in that. We really enjoyed watching the kids do the presentation. They were great.
Chris:
So I'd like to add that, pretty much, you know, this is one of the, the things that you see from the parts of the authority that definitely supports the community. And I like to see how that is done. You know, and the fact that you guys were able to work with the class and actually come up with a project to utilize the funds from the Park Authority so outstanding. And, appreciate that.
Describer:
Cameras zooms out from Chris.
Deborah:
Well, we've developed a very good partnership, I think, between our two governmental entities to really focus on what it is that the city residents really want to see used with those funds, and we're continuing to work on that project.
David:
Thank you again. Seeing no one else signed up, for public comment, I am going to close the open public meeting period, for aka item #5 on our agenda and open it up to our own, open space managers report.
And manager Craig going to take the podium, please.
Craig Miller, Supervisor, Parks, Trails, and Open Space, CPNMD:
You've all seen my report. Does anybody have any questions?
Chris:
I do, five. What are roots? Seeding bare roots. Seeding trees?
Craig:
Okay, basically what we're doing is we're trying to add a lot of trees to this community without a lot of expense, because your average balled-and-burlapped tree runs about $300 to $500.
I can get for $500. I can get 66 bare roots, tree seedlings that range in size from this to this. And they're bare root. In other words, the roots don't have any soil around them. And what we do is we plant them out, we stake them up. David's been putting in drip irrigation on them, and we've been extremely successful over the last 4 years.
Establishing these things. We're getting anywhere between a 50 to a 70% establishment survival rate, depending upon the species of trees we're planting. Another thing I want to add to that, I do have a few additions here. We just received, by surprise. I'd forgotten I'd ordered these, but we got them last Friday. 24 conifers in pots.
These are potted trees as opposed to bare root. We don't want to plant any more bare root pines or spruce or anything like that, because they don't survive well. But being as a potted in the soil is knitted into the soil or the roots or in the soil. We ought to have some good success with these. So we got 12, Scotch pines and 12 Douglas fir, and we're going to put them around in the open space once again, like with the rest of these trees.
So David's working on prep work on getting those holes dug so he can get them in the ground. Weather permitting, of course. So. Yes.
Describer:
Camera quickly pans to Chuck asking Craig a question about the numbers.
Chuck:
Thank you very much. The use of, excess use of roads. Yep. That'll kill not only the plants in the median strip, but probably pine trees along the sidewalks, too, over time.
Describer:
Camera quickly pans back to Craig.
Craig:
Over time. But actually, our problem with the pines on other sides either side of the road is not due to road salt. The reason we're losing those pines is they were all planted in the wire baskets with the burlap and ropes around the trunks. They're also all planted way too deep. So I've been taking out. I probably taken out in the last five years, close to 70 pines that have died specifically because of poor planting techniques.
Chuck:
But regarding the road salt, I do think it's an excessive use of salt. That's all in my opinion. Have we had this discussion with, whoever applies the salt?
Craig:
Yes, I like I said, I spoke with Larry, public works Director over at the city, when I first met him, and he was going to go out and take his contacts because it's it's fascinating guys. If you drive north on Monarch Boulevard and you hit the city limits as soon as you pass the city limits, the the native grass on both sides of the road that Douglas County does the snow removal. Absolutely perfect. South of our border, half of the grass is dead. I did soil salinity tests three years ago because we were losing plant material.
The report I got back and this was from Castle Pines Parkway Medians, both sides of Castle Pines, which interestingly enough did not have much road salt. Most of the road salts on the edge close to the turf, but the medians take it really bad. The soils report I got back said that the degree of salinity and alkali in the soil would not support plant life, period.
It's that bad. And I did one soil test up in the north end of town where I'm talking about the same thing will not support plant life. So something's got to give. Something's got to change. I've had residents complaints from up north, on the north end of town, basically saying we're frustrated because we can't grow beautiful native grass like they have everywhere else.
And it is a problem. It really is. So Larry was going to, take his, or get the specs from Douglas County and try and get his contractor to start following those, because they're obviously just applying wrong, and they're applying way too much per lane mile.
Chuck:
In the meantime, while we're replacing these plants, are we going to be doing the same thing with these same plants next year? Well, hopefully. Is the soil that bad?
Craig:
We're removing the soil and replacing it.
Chuck:
You're removing to the soil. How deep do you have to go?
Craig:
About 12-18in. And we have to replace the soil to that depth. And it's a very costly project. It really I mean, we've already dropped probably just on Castle Pines Parkway alone. We've probably spent, close to a quarter million dollars in landscaping, and we've spent the last two years probably close to $50,000 replacing plant material and soil.
It just can't continue anymore. It's one of our biggest frustrations because my guys work so hard to get this stuff in. We've spent a lot of the district's money to make this place look better. And you go out there now and it looks like a war zone. Everything's dead and dying. So it's very frustrating along those lines. Thank you. You're welcome.
Chris:
A couple of other things. I have something to add to that. So based on our conversation that we've had and, you know, I think we brought this up last month, also, I reached out to the city council folks themselves and Councilwoman Mulvey over there was able to get some information. So I will share that with you.
But I would be, you know, remiss if I didn't say that we're actually having good communication amongst us. And I think we will have an opportunity to address this. I think we were all looking to save money here. And $250,000 we can save.
Craig:
Yeah. And that's our desire. We want to get this problem addressed so that we can actually get these landscapes to start maturing.
A couple other items I just wanted to add really quickly, you know, the retaining wall, in your neighborhood, as a matter of fact, that's bowing outward. It's basically, a problem from saturated soil and landscape bed above it. Plus it the wall was built improperly. There are no dead man pieces holding the wall into the earth, so the whole thing is starting to crumble.
As I noted, it is, our responsibility per the plat. We are meeting with our first contractor this week. We got a really good line from our landscaping company, Broken Arrow Landscape. He knows a guy who's an expert on rock walls like this, so we're going to interview him and get his bid. But unfortunately for that length of run of the wall, we could be looking anywhere between $50,000 up to $100,000 or more for repair, depending upon how extensive it is.
And we may have to pull out all the landscaping to do that. So it's going to be a real mess. So it's a real problem from that aspect.
Chris:
Well, I appreciate you guys actually looking into it. We've had multiple residents call a couple of us, myself and Director Merritt and we were able to offer that information to Jim.
So thank you guys for going out and take a look at that. Sure. Yeah. Let's take a look at it and see from a cost perspective how that impacts our overall budget. And then I guess we'll have some additional discussions in it. And then also as that's the only, landscaping company that we use, are we.
Craig:
Broken Arrow is the only one that we do use, and we use them exclusively because they undercut everybody's prices by about 20%-40%.
They're the cheapest in the industry. And he offers a full one year warranty. And his workmanship is extraordinary. So I can't get much better than that. Yeah. One other thing I wanted to add on the classes that I'm teaching. That's why I was not at the playground. Dedication is I had a class on Saturday at 74 people at that class and it was snowing.
So go, go figure. I mean, people have spring fever like this. Nobody's business right now. They want to get out in the yard. They want to start doing stuff. So if nobody has any further questions.
David:
Quick question regarding, street way signage, what is the Douglas County specs? As it relates to clear view of those signs?
The pedestrian signs and blinking lights is an example, right. How far back do we have to have a clear line of sight? From the, traveling.
Craig:
Yeah, it varies based on the uniform traffic control laws and requirements, but we try and keep the view angles open for all of those as you come around corners and things like that.
David:
Well, the corners compound the situation. We have a couple that wonderfully so we have some nice landscaping amongst the signage and the and the, strobe lights as well. I'm just curious if you were, aware of those specific because our roadways, Castle Pines Parkway and Monarch are specific right away with specific required distances. Do you have a off top of your head what that distance might be?
Craig:
Actually, it does vary quite a bit just based upon the the speed limit and everything else.
David:
And the road width and the right of way.
Craig:
Exactly. And any curves and intersections and things like that. But what, what me and, my arbors do is we strive to make sure all those are clear. If you're seeing one that you have a question about, please email me and I'll, I'll basically compare it to the uniform traffic control code and make sure that it's in compliance.
But we've we've hit them pretty hard. There were some trees especially well between Deer Clover, on Castle Pines Parkway on the north side of the road, all those trees, the branches were down this low, right? There wasn't even pedestrian clearance. We got all that stuff raised up two years ago and cleared all the signage in through there.
So it's, trees grow. So. And we try and save up on everything. But there's only three of us out there, so I need your eyes, to point these out. If you see them.
David:
Will do. Will do. Thank you. Craig. Yep.
Describer:
Craig gets ready to take his seat and points to Chuck, who has one more question.
Chuck:
One last question, and I hope to not open up Pandora's box, but I've had it mentioned to me on a few occasions, and that is an issue we dealt with last year regarding the fence along Castle Pines Parkway.
Seems like it's coming down again. Yep. Is that do we have we establish who's responsibility?
Craig:
The HOA and the HOA has basically turned it around and said the homeowners are individually responsible. And that's the final. Yep. Thank you. We battled this for 3 years. 4 years before the HOA finally, grudgingly admitted yeah, the metro district has nothing to do with it.
The city has nothing to do with it, so it's on them and it's really the HOA responsibility. But they decided, hey, we're going to just share the cost with all of the residents that are involved. So hopefully we should see some kind of resolution there because it really has looked horrible, really bad. So thank you guys.
Describer:
Craig walks back to his seat.
David:
Very good. Beth, I see that, you've left Kim behind and have decided to take this opportunity to, give us a legal report.
Elizabeth, Castle Pines Resident:
Absolutely. Kim, apologizes for not being here tonight. He had a previous commitment. So the first thing I wanted to talk about, it's not in your legal status report. It's actually, a catch up from last month.
As you recall, the board considered a contract with CRS for, billing services. So I have an execution copy of that today. If the board is so inclined to, make a motion and approve that contract.
David:
As we speak, that along with the, the resolution to amend our contracts with developers, reference award two periods or both still, and remain under advisement with board. Working with Jim on by and through some of those issues. Mainly a reconciliation of services with CRS, but it's my understanding that we're not under any time frame that is detrimental at this point. So we're trying to make sure that we don't have to, do it twice.
Okay. That's the update on both those. Okay?
Elizabeth:
Awesome. Thank you. Okay. So then I have the renewable water fee increase. I saw that that was on the agenda at a later time. We can go ahead and do it now or however you'd like to do that.
Describer:
Camera pans and zooms to David.
David:
Sure. This is, the initial item on on the report. Ladies and gentlemen, and, this is where, the action tonight would be, for this board to consider the approval of the resolution to increase the renewable water fee. There's the. As Beth indicated, the draft resolution is attached, and we could, execute that. This board has been working on that subject, for probably close to 6 months now.
And I think that with all of the proper notifications to, participants, including, the, the ones that are going to receive it and the ones that are going to pay it, I can attest to of, taking place. We've had, We've had 20 some permits from 4 different developers, that have been pulled since that notification.
Not that there was a run on the, on the permits as much as that. There was no resistance to, participating in that investment fund. So it's with that, that, I would like to move that the board adopt the renewable water resolution and authorize the execution of the resolution. Tonight, if I could get a second to that, we can open it up for discussion.
If there is any further discussion on that item.
Board Voting All Speak:
I will second that. We have a motion on the floor to accept the renewable water, fee increase. And a second by Director Crew. Is there any further comments, questions or concerns about that? Just one quick comment. As you clarified with me that this this fee increase is just for development.
Yes. Nothing to do with individual citizens. Correct. It. It's, an impact at the time of permit only. And, it was, in my opinion, an area that we, didn't take full opportunities that existed as compared to our neighbors. Not that we, you know, try to keep up with the Joneses, as it were.
But we certainly have, a, a definitive number of opportunities to, increase our renewable water fund. And that being our priority, I thought it would be best to pursue it. Okay. Anyone else?
Describer:
Camera pans to District Manager Jim Worley.
District Manager, Jim Worley:
If I could add to that? Mr. President, just so you know, the process is I get a check that includes the water connect fee, the wastewater connect fee, the renewable water investment fee, and then a new construction meter charge, and inspection fee.
I get that from builders. And from that check I will create a will serve letter which says based on everything that's done correctly, we will serve water and sewer to this piece through this lot or whatever it may be. They take that letter, go to the city and get their building permit. So there's nothing built necessarily, as far as that is concerned, until they've paid those fees.
So that gives you an idea of the timing of it. You bet.
Describer:
Camera pans to Chuck.
Chuck:
David, just again, to confirm, if I understand Denise correctly, this is a a renewable water fee increase for, permits, issued to new development? correct. Not residents. Not residents.
David:
Whether it be a new irrigation system or resident commercial development. Anything that taxes, no pun intended or water system, is required to participate in the investment fund we created for a renewable water.
And, so it, only pertains to and takes place at the time, as Jim mentioned, at the time, the developer asked for a will serve that they then take to their, usually their, their banker investors to confirm, the, the plausibility of that development. Cut the check and make the payment.
Chuck:
Would it be appropriate if you would accept a modification to your motion that, identifies that this is a, a development fee cost, not a residential fee increase. Would that be appropriate?
David:
Well, as it's described, The answer is yes. Let me, let me let me try to restate it then. Okay. I move that the board adopt the renewable water fee resolution, which is attached here to the, authorizes, the execution of same. And in it, it describes a basically a $10,000 per tap increase over the course of the remainder of this year for those that are pursuing additional taps to and from the district for new development.
Could I get a second? I second. Very good. We have a motion on the floor and a second, I think I've incorporated most of the, elements of the resolution as well, and certainly to your liking. Chris. Anything further?
Chris:
Sorry, I do have a question. Is it $10,000? It says $10 in consideration? Tell me how that works out.
Describer:
Camera pans to Elizabeth.
Elizabeth:
Oh, the $10 is just the consideration, in the agreement.
So every agreement legally has to have a form of consideration and usually it's very nominal. But actually so the fee, amounts are not listed in the resolution right now. They'll be affixed at a later date. Okay. Once that's finalized.
David:
That's why I memorialized it in my amended motion. So we knew the caliber of ducats. We're talking about.
Chris:
Okay. I'm good.
Board Voting All Speak:
We have a motion on the floor made by myself, and seconded by Director Lowen, Comments and questions. No further comments or questions. Concerns related to same. I will ask for a vote on the motion. When called upon, please indicate your willingness to approve with a Yeah or a Nay otherwise. Director Lewis. I. Director Lowen. I. And Director Crew. I. McEntire is a yes. The motion passes unanimously. Well done. Thank you, Beth. Awesome.
Describer:
Camera zooms from the board to Jim.
Jim:
Mr. President I'm sorry. If I could just for a second, Beth. Thank you. What I wanted to point out, Chris and Chuck is on this on our agenda. It states that that it's for, for developers and that. So hopefully that helps you with the terminology. I want to point that out to.
Chuck:
It does. If I turn the page over and had seen that, I would have not asked David to amend the motion, but we're covered. Thank you.
Describer:
Camera pans back to Elizabeth.
David:
Yeah. Shortcutting the agenda just a little bit. Beth got us all excited up here. I apologize. Back at you. Go ahead. Continue, please.
Elizabeth:
All right. So, I just wanted to mention this. IGA, to transfer assets and terminate the Castle Pines Parks Authority. That is in process right now. However, Denise, notified us that they're still working on it, so, we don't we are not asking for any sort of approval at this time. Very good. And that's all I have. Unless you have any questions,
David:
I don't see any further action items. And again, for the record, as long as we're not getting anyone's way, the board has taken, some, some extensive time to reconcile, those, duties, between CRS and our previous, office manager or administrator. And we just want to make sure nothing falls between the cracks. And so I think we can get there.
Within the next 30 days. And, as it relates to, What was the other matter? The warranty period about. Yeah, the resolution warranty. Not to let the cat out of the bag, but but, we're we're, seriously leaning towards, maintaining the agreements that are in place and not making any amendment. But we'll give it a one last 30 days to, reconsider that, before making any decisions next month, but count on for next month for anyone that's asking, okay?
Elizabeth:
Certainly. And and just to let you know, feel free to give me a call if you have any questions about it at all, so.
David:
Will do. Thank you. All right.
Describer:
Camera pans to Jim as he walks to the podium. He pretends to take his folder so he can sit back down. David states that he was kidding.
David:
We're going to change the agenda, just so that Jim has to sit down and get back up. I'm only kidding, Jim. Take item #8, and, have your way with it. Tell us everything that's important for us, and those tuning in to know. You have the floor. Thank you.
Jim:
Thank you so much. I appreciate it. Certainly addressing any questions of what I put in my report, but I want I want to highlight and continue to talk about the net climber. That event last Saturday. Chuck, thank you for coming. It was very moving, very moving. And as I mentioned in my comments and some of you know this and some of you don't, my wife is, is very involved with developmental disabled, autism and all of that.
And so as I, as I said Saturday, it is very near and dear to my heart. And so to see something like that, especially for that group that need it, but also the other kids and play on, it's not like, no, you can't go over there. It was very moving. So thank you for letting me be a part of that.
Deborah, and Denise, so I appreciate that. So I just wanted to point that out. I really appreciate that. So I'll address any questions you may have. If any.
David:
Both on on either your report or the Kennedy report. And I don't have any looks like it is very much in order. Thank you. Okay. Gentlemen? Lady?
Jim:
If you think of one in a few minutes, I'll be here and. No problem.
David:
Sounds good. Thanks much for the review. Thank you. Up the good work. Thanks, Jim. All right. With no further ado, I'd like to ask Amanda to the podium. And if you will provide us with your financial report. All right. Thank you.
District Finance Director, Amanda Castle:
Thank you to everybody. It is a pleasure to be here this evening. I'm glad the weather is slightly more beautiful than it has been. And rumor has it that it may keep going that way. So I'm not going to hold my breath, but we're in. I'm a warm weather kind of girl. I grew up in Phoenix, so I like the heat.
I moved to Wyoming when I was a little bit older, and went, what is this. So I still have an acclimated nature. Many, many, many years later. I still haven't acclimated. So we have forward the board's, review and approval tonight, the financial statements as of March 31st, there are a few items that I'd like to look at with the board.
When we look at page 4,The Statement of Revenues and Expenditures for the general fund, we are seeing across the board as we were last year, interest earnings really continue to exceed expectations, which is great. At this point in time. We have, revised earnings projections upwards from the $3.14 that was originally budgeted to $550,000. As we anticipate, based on current trends, that the interest earnings will be that high.
Now that does, move across funds but but those those earnings are trending well above budget. When we look at specific ownership tax, which is line two of the revenue is their specific ownership tax currently is trending under budget from where we expect that can even flow depending on when people are purchasing vehicles and that sort of thing.
So we'll continue to monitor it. Normally earlier in the year you see a spike. So we'll just watch that and see if we anticipate that to come in less than we originally budgeted. But that right now we don't have enough information to really hone in on where we think that projection should be. So we'll continue to monitor that.
The only other, projection item in the general fund is just kind of, lower middle of the page. There auditing. We did increase the project projected balance for auditing from the $28,000 that was budgeted to $33,000. That encompasses that PERA audit that the district, went through. And we'll talk about that in a little bit. But I did want to point that out for the board's, note.
Having said that, I do want to just note that that is simply a projected balance. I know last time there were some questions on that. I do think we're going to have to bring forward, a potential amendment to the budget fairly soon, but, we'll, we'll talk through that in a little bit. So when we continue to look through the budget, if we go to page seven, the CTF fund.
So that's the concept conservation trust fund. We get lottery proceeds, from the Conservation Trust fund that can be used for new park projects. So they can be used for existing things. They can't be used for repairs and maintenance. So, you know, maintenance on trails, that sort of thing. We cannot use it for that, but we can use it for any new projects that come up relative to that.
Right now that that's trending over budget, which is great. Typically on a quarterly basis, we see around $12,000. This past quarter, we saw $17,000. And those tend to be fairly equitable through the years. So that tells me that perhaps that balance will remain high this year, which is really good. Like I said, we can look at using that for, specific projects as we move forward.
When we look at page. Having said that, I'm going to go back on one thing on page 6. You'll notice that there is an improvement for Parks and Recreation for $27,000. In 2018, the district paid for installation of playground equipment through CPPA. So we actually had revenue in for that, and we paid for that equipment. So CPPA gave the district the revenue and then the district paid for the equipment.
So it's an in and out. But we thought that originally would occur in 2018. It didn't occur until 2019. So while that appears to be out of budget, it's really just a shift from 2018 to 2019. And it does wash. It nets out. So you'll notice, in miscellaneous revenues we have right now $34,000. The majority of that is the revenue associated with that.
So in 2018 we deferred the revenue so that we can we can match it when the expense was incurred. Moving along to page 9, we are trending really as expected in water service revenue. We'll continue to monitor that. And I would expect that the next few months will really paint the picture as to where that's going. But right now water service revenues are trending as expected.
You will notice that in the water and wastewater fund, salaries are trending under budget. That's because we had originally budgeted for the inclusion of an employee. That would be split between those two, and that person has not yet been hired. So that continues to trend under budget, which I would expect. When we look at page 11, the water non-operating revenues, like I said, interest earnings are trending well above budget.
So you'll notice a large variance there that we continue. We will continue to monitor, but we anticipate that to be very, very high, particularly because we've got a large amount of, cash that's held within the water fund because of large projects and that sort of thing. So that balance increases quite rapidly. As noted in our memo, the, Parker Chatfield storage for or.
Yeah, that's what it is. For $110,600. That cost will be moved to 2020. So you'll notice that the budget through has been updated to the full amount with the cost savings owed in 2019 only because that will shift into 2020.
Chris:
Can I ask, can I ask what's going on here? Can I ask you a question back on page ten? Yes, absolutely. So the ditch land and rights expense. Yep. What can you expand on that please.
Amanda:
And I know that was something we were looking in on. So Jim I think you have more information.
Describer:
Camera pans to Jim as he expands on the ditch rights expenses
Jim:
Yeah I do Chris, A number of years ago we bought, farms and water rights up north. And to be a part of that, you have to be involved in the ditches up there. They have different ditch rights. And what I think happened, we have been paying about $34,000, roughly $35,000 since 2013. I think, every year. And so whenever the budget was put together last year, somehow that didn't get in there. And I don't know why I wouldn't.
Yeah, but it is it needed to be in there and so that's what that is, Chris. Is that it. It's been paid for a number of years. It should have been budgeted for 2019. Okay. Thank you. You bet.
Amanda:
I'm not sure if there was the thought that agreement was expiring or what was going on there did that.
Jim:
Yeah. And I wasn't around at the time so I don't really know what discussion there was.
I look back through some paperwork, some work papers and stuff and it just wasn't on there. And so it should have been on there. Okay.
Describer:
Camera pans to the board, zooming to David.
David:
I was under the impression that that may have had something to do with the drought, that the ditches weren't active.
Amanda:
And I do think that was part of it last year when we were looking at it.
Because of that, we didn't anticipate the expense to be as high. So I think you're right. I'll have to go back on our we have pretty detailed notes from each meeting that we have relative to that. But I my assumption would be exactly that, that we expected that expense to be really low. And if that's the case, it may be worth asking Wells and GMS about those to see where that cost came from.
David:
We need to have that documentation on file. And we do any any of those notes or are within the files. I guess there wouldn't be. And you may have a copy of the agreement. The ditch agreement.
Amanda:
Correct. We have that.
Describer:
Camera pans from the Board, Jim and David multiple times.
David:
Yeah.
It'd be interesting. Just as a follow up to know if that's a variable cost based on on, the drought or usage, moving forward.
Jim:
I'll look at it. Actually, Eric sent me a recap of everything has been paid since 2013, so. And most of those look very similar. So I'll, I'll recap that and take a look at it.
Thank goodness we're not in a drought right now though.
Chuck:
Can can I go backwards just one second. Yeah, absolutely. You may have explained this and I might not have been paying attention on page nine under engineering services that are reimbursable. Just explain that.
Amamda:
So we have, services for reimbursable inclusion costs whereby the district pays for those costs, engineering, legal, that sort of thing. And then we're billing the developers, through with Lagae.
So we build them and then we maintain a chart, we invoice them monthly and collect on those. Some developers prepay for that, others pay as billed. In 2018, we thought that those costs were ending or at least trickling off, which is why they weren't budgeted. Now, having said that, they're in in, in and out. So while the district pays for the costs at the same point, we turn around and bill for the costs.
So we're we're a pass through at that point for those costs. So you'll notice that we have reimbursable inclusion costs under revenue, and then we have associated costs and expenses. They may be under engineering, they may be under legal, but all of those are tracked and billed by developer. Thank you. So a couple of other things for the board to note.
As I stated previously, we are currently anticipating should the board approve the contract with CRS, that that will put our general fund budget over budget by roughly $84,000 from the original budget adopted. We have had some changes in projection, small things. Like I said, due to the PERA audit, that contract, those sorts of things that are pushing that budget higher than anticipated.
We also have some, changes within payroll due to changes in personnel and that sort of thing that we're trying to work through. But right now, we anticipate that projected balance to be, over by $84,000. We will continue to monitor that, because when it's brand new, you kind of overestimate what you think, and then you can peel it back.
But as we get a more firm grasp on that, we'll probably bring to the board, a request for a budget amendment so that you can just amend the budget to include that contract and to include the price of the audit. And that's really all we're doing there is saying, hey, you approve these contracts now we just need to reflect that in the projections within the budget.
So, you can you can approve the contract, you can do all of those things. But then we have to tie it up from the budgetary standpoint as well to get that going. So I wanted to bring that to your attention. Another thing on a positive note, we have the opposite effect going on in the Enterprise Fund.
So we had some changes to capital that we pushed through. When we looked at the long range capital plan, there were some things that were budgeted this year that are actually happening in later years and that sort of thing. So as we moved those costs out, we anticipate, an appropriations capacity, which means we're going to spend be under budget of 4.5 million in 2019 relative to the Water Enterprise Fund.
So that's a positive. We'll continue to monitor that. But I wouldn't anticipate any overages within the enterprise funds. The general fund tends to be the one if we're going to go over just because it really, embodies kind of that administrative piece that can fluctuate based on, changes in personnel and contracts and that sort of thing. So I'll keep the board apprized to any changes that come up.
But I did want to bring that to your attention. Having said that, we are continuing to work with, Jim and Chris to review things pretty regularly. We do have a meeting next week to go over payroll in the allocations of payroll. We've noticed some, swings that are perhaps outside of our expectations. So we just want to sit down and make sure that everything aligns with where we think it will, primarily when we look at the sewer fund.
So if you look at the sewer stormwater fund, it appears as though payroll is trending over budget, but in total payroll is not. Which tells me maybe allocations are a little bit different than we budget for. So we want to make sure that those are being split appropriately. So we're just going to sit down as a group and walk through that to make sure we've got everything in line relative to that.
And that gives us a good line of communication as well with CRS to make sure that we're all on the same page as we move forward with those, financial presentation. So while we don't manage CRS as the financial managers, we're managing those processes. And we just want to make sure that those are in line with the budget.
So we'll we'll keep you updated on on what happens there and what we figure out relative to those payroll expenses. We're also working or continue to work with Jim and Parker Water and Sanitation. We have biweekly meetings right now to go over any questions or, any items that are needed or anything else. I think that's proven to be very advantageous for everybody.
It gives us all a chance to ask questions. It gives us a chance to provide documentation and clarity. And I think it's added a lot of clarity, which is really good. And finally, we did finish fieldwork for the PERA audit. Thankfully, Rubin Brown was able to contact CLA, who's the audit firm that does the audit for PERA.
On a first reading note, CLA said, wow, I have no idea why you were, selected because you're so small, it doesn't matter. So that was fantastic to hear. But CLA did say the work you've done is good. We're great with that. The only finding that Reuben Brown had, which is fairly minimal, was that for one employee who has been with the district for a long, long time, we couldn't find their personnel file.
I'm betting it's here somewhere. And that's what I told them there. There are dated files here. It's just a matter of knowing where they are. So I talked to Jim about considering having a file audit done, which may be advantageous, particularly as we work through things with Parker. That's something that a lot of firms will offer, their services for to come in and say, hey, here's the state statute, here's everything you need to maintain.
The district has a lot of stuff. And in fact, I bet the district has too much stuff more than too little. But it's just a matter of all of us knowing where that stuff is. So thankfully, we were able to find everybody else. I think we've got everything electronically, and going forward, we know exactly what to maintain relative to that.
So that was good. The only other things we're working on or finalizing fieldwork for the district's audit, Rubin Brown is completing that. We should be done with that in May, which is good. And then we're finalizing all of the information for CPA. So pinnacle also does the accounting for the Parks Authority. So we're wrapping all of that up so that that can come to a close and be transitioned smoothly.
So questions?
Describer:
Camera zooms from Amanda and back to the Board and zooms to David:
David:
I. Know this this board made some adjustments, before adopting the 2019 budget specifically, related to the accounting work that was going to go into, this joint study. Yes. And and, but with, with PERA, which we were not aware of, we're looking at an adjustment and, that concerns me. Not just because of the obvious, but, because of the timing and, and, so the long and short of it is whether it has to do with, Parker.
That was not necessarily itemized in our contract. That joint study is when I'm making specific reference to PERA, as well. Potentially an audit file, whatever it may be. I want to make sure that there is a there is a clear understanding and method of operating that both parties can count on. That goes something like this. If there's going to be an extra, there wants to be a pre-approved proposal and if there's going to if, and if there is going to be an adjustment to that pre-approved proposal that culminates in there being an extra charge, we want to make sure that that does not, get pigeonholed somewhere.
We want to see it on at least an every 30 day basis so that your firm is is kept, true. and paid for the services that, that you render and that we've asked you to, and that there's no chance of any, any, any delay in those payments. Right. And any surprises at the end of the year.
I suspect that's what's going on. Yep. And it's May that we've not seen. So we're operating within, as long as that budget was divided by 12.
Amanda:
Right. So the way that we do, we ended up doing it because it's the way I looked at it at the end of the year was, listen, here's the budget it takes to run day to day operations for the district.
The $50,000 is excess capacity for special projects, for the potential consolidation, for the para audit, for all of those things. So we actually have two invoices. The one that you get monthly. That's simply our normal rate. And then we have one for additional billing. So this month I looked at it actually beforehand it was $1,300, which was primarily attributable to well it was probably have to pay to have two meetings with Parker.
I don't anticipate at this point in time exceeding that $50,000 by any stretch. And in fact, I would hope the way things are going right now, unless something crazy comes up, I would think we would be below that, which is good. So we'll continue to monitor that. But what I didn't want to do was say, okay, we're just going to annualize $200,000.
Really. We're not ever going to use that capacity. So we treated it as a here's our regular capacity and here's additional that the district said they want to purchase that will hold for the district so that we're not, when you come to us and say we need things were available, we're here.
Describer:
Camera zooms from Amanda and pans in between the board and Amanda.
David:
Well, certainly makes our review easier.
Appreciate you taking that initiative. And and, again, just for, open, candid understanding to have this conversation is appreciated. I, the numbers that you have shared with us so far sound awesome. Especially related to the volume of work that you've done already and I mean, a mountain of reports, that is going to be the lion's share of information that is shared.
It's now a matter of truing those up and, some new forecasts, which, again, is a part of our budget process that is, not too far off. So, that's fantastic. Thank you for that. Understanding the conversation.
Amanda:
You're welcome. Absolutely.
Jim:
If I could add something to that, Mr. President, a lot of people are doing a lot of hard work on this, and pinnacle jumped right in there with both feet and almost had to slow Eric down a little bit.
But but this is it's really we don't do this very much this kind of and I know a man and I have worked together before. We haven't done this very much. But everybody that's involved when it's just jumped up and done a great job, where can I help out more and what have you. So I want to thank you and Eric and everybody Pinnacle for the good work.
Thank you.
David:
We second that. And again, the board is aware of the mountain of documentation that was requested by Parker and is also aware that, it was, without hesitation and with a great deal of sense of urgency, that you've already provided that. And as Jim said, Eric,
Jumped out there and is in, in, in front of us all right now and, and, you know, specifically, that that email that he sent to us, dated April 3rd, regarding some of the new forecasts for our enterprise fund. Do me a favor, please. We haven't responded specifically to that, part parcel to making sure that our homework and the resolution was adopted before, that renewable adjustment was made, and that's glaring, of course, but, we should probably get together again, with Eric.
I think that would be great news. New projections, because I know that, our partners will brook. Parker. Are, looking for those, here before too long. More importantly, we want to get them to them, where they they waste too much time in the past because, things are,
Improving. So. Absolutely. Will you please. I will absolutely. And and so that would probably be you, conference call, Eric. Yeah. From pinnacle. Okay. And, Jim, you know, my schedule pretty much. Okay.
Amanda:
Wonderful. I will get that on the calendar. Eric is out of town the next two days, but he'll be back on Wednesday.
So once he's back, we'll we'll get something set.
David:
For next week? Probably. Yeah. Okay. Yep. Absolutely. Thank you, thank you. Nice job. Thank you.
Describer:
Camera has panned back to the Board.
David:
We appreciate the financial report again. And as a part of the regular meeting, on an every 30 day basis, this board considers approving and ratifying, payables, from our various funds and in total expenditures. It's with that that, I would like to make the following motion. I move that this board approve and ratify the current payables denoted in the agenda for March 2019, including those check numbers 24255 through 24313.
Specifically, the General Fund and Debt Service approved $37,339.89, ratifying $36,767.50 from our general fund and debt service, for a total of $74,107.39 from our Enterprise Fund, 76,852.41, and ratifying $172,343.50, for a total of 249,195.91. All electronic payments for all funds ratify $103,909.33, with a like total for a total expenditures for the month of March 2019 of $427,212.63.
Board Voting All Speak:
Do I have a second? I will second that motion. I have a motion on the floor to approve, and ratify the current payables for March 2019 and a second by Director crew. Is there any further comments, questions or concerns by the other Directors? Hearing none. Seeing none. I would ask that, we vote on the matter when called upon.
Please indicate your approval, or otherwise. Director Crew? Approved. Director Lowen? Approved. And Director Lewis? Approve. Director McEntire is the affirmative. Motion passes unanimously. That takes us to, Director's matters, item number #10 on the agenda. And specifically, I, let's hit item A for one last update. Director Crew?
Elizabeth:
And I'm sorry. Director McEntire.
I'm suggesting that the board also, accept the financial report that was provided by the financial Director.
David:
That's two times in a row. No worries. We are going to have to amend that agenda to specifically make sure I don't forget that.
Describer:
David chuckles as Jim and Elizabeth promise to keep an eye.
David:
Yes. I'm just going to make a separate motion.
Board Voting All Speak:
I'm going to ask the board to, approve the financial report given, to us, through the end of
Of, March and, by our finance Director this evening. Is there a second? I'll make, I second it. Any further comments, questions, concerns about the motion that is made and seconded by Director Lewis to approve the financials presented this evening through March 31st, 2019.
Look for a vote on the matter. When called upon, please indicate by affirming or disapproving Director Lewis. Approved. And Director Lowen. Approved. And Director Crew. Approved. Director McEntire approves as well. Thank you again for the reminder. Motion passes unanimously under Director's matters. Director Crew.
Describer:
Camera zooms to Denise for Directors matters.
Denise:
All right. An update on the Parks Authority. First off, we have another meeting this Wednesday at 9 A.M.
If anyone wants to attend, it's open to the public. We had in our, package agenda, an intergovernmental agreement. But Deborah and I have discussed at length we don't like exactly how the verbiage is. So we're making some changes to that, and we hope to be able to come to, an agreement at this Wednesday's meeting of how the verbiage should read what we intend to do.
Assuming that we can all, come to an agreement on that, we can set in motion getting the rest of the Parks Authority funds transferred to the city, noted in a separate, line item for the city with also in the agreement noting that the funds will be used specifically for what the Parks Authority was set up for.
So the money spent will be retained in the boundaries of the people that paid for it. We do have some specific items that we're recommending but not requiring, which is part of the verbiage that we're working out. And I think that's about it. Yes. Yeah.
David:
Very good. And as Beth pointed out, there, officers, in receipt of your request to hold, pursuing any action on it tonight.
And so, it's with that we're waiting on your red lines, and they're, new draft. And so thank you for all y'all's efforts again and hard work. And we're excited about, the light at the end of that tunnel being ever so bright and cheery. Thank you. Thank you. Chris. Director Lowen, any other Directors matters that we haven't addressed this evening, that anyone has?
Director Crew, anyone?
Chuck:
I just have a quick question. It's more of a learning experience for Amanda. With the budget. Me? I'm learning, not you. You're teaching.
Amanda:
I'm learning every day, so.
Describer:
Camera zooms and pans to Amanda.
Chuck:
When there's a. Some people are bottom line oriented and I'm more of a line item kind of guy. The bottom line, which works itself out when there's a, overage in a line item, is that required to report to the state or is it a bottom line report?
Amanda:
It's bottom line per fund. So we will always draw your attention to anything we think will put you over, particularly of a large amount. Now, if you're like $5 over in interest or something,
Chuck:
Would put us over on a line item.
Amanda:
On a line item, it doesn't matter. Bottom line only for the state. So appropriations they look at it by fund.
So even if you balance out between your funds, it doesn't matter. You have to look at it on a per fund basis, but not a per line item basis.
Chuck:
And what kind of overage percentage wise does the state make us report?
Amanda:
Any. If you're a dollar over on a fund, you have to report it. And I have been there before, so you have to you don't have to report it.
You have to amend your budget. The funny thing is you can do it after. So even if you go over at 12/31, you can amend in February for the prior year. So oftentimes you'll see that, but normally we will bring it to your attention ahead of time. And say, listen, we see this overage in this area. We either say, but we've got cost savings here or we're not seeing cost savings anywhere else.
And because of that, we think you're going to have to amend.
Chuck:
Perfect. Thank you very much. You're welcome.
Describer:
Camera zooms from Amanda and pans back to the board.
David:
As a follow up to Chuck's question. How many times have you run into a situation, as he described and you answered and the state concerned themselves with why it was over budget?
Amanda:
That doesn't, they don't care why it's over if you have the money to pay for it. And the board's approved it, they're good with it, so
David:
That's the underlying reason. The review. The Re-review the Re-Re-Re-Re-Re-review. Yeah. okay, Good.
Amanda:
Their concerns would be if the board didn't approve it. So if you over expensed the reason being you can get into trouble. So you could enter into a contract that then becomes null and void.
Because you didn't the board didn't didn't budget for that contract. So that sort of thing where you can have that, that take effect, you also have instances whereby you know, if the board's not approving that, then you're really not doing your fiduciary responsibilities for taxpayers and that sort of thing. So that's their primary concern that you're monitoring it.
And and adjusting accordingly.
David:
I like our method of operating, however, and don't want to see that change. Where in, when we get into those conversations, regardless of the net result, we get a full itemization for the cause and effect. And and specifically, what we talked about tonight as it relates to, the possibility of this, budget adjustment, because of, of, accounting expenses.
I know I don't have to remind anybody, but when we get to that finite discussion to run through the chronological math associated with, the previous manager and his, golden parachute in the, in the in the the the levy and the burden that the residents had to bear, for that kind of behavior, along with, other staff members, and, you if if you'll be prepared to go through that, I to believe that we're going to be close and it may as is, we've talked about before and as, as contracts have been negotiated, we have been focused on making sure that we're operating within budget.
So a few more periods probably need to come and go before we spend a whole lot of time on it. But, if we get there to have that chronological itemization I would like to have of record, and the residents know what happened there. Absolutely. Yeah.
Very good. I will close Director's matters. As a part of this meeting. Open it up to, closing public comment period. And, again, only one private residence by the name of Mulvey signed up. And so you get a second shot at this board. Would you like to take it or would you like to pass?
Okay.
Describer:
After Deborah answers off mic, she walks to the podium and the camera pans and zooms to her.
Deborah:
I'm available if you wish to, understand more about the city's research on the salt roads issue. But that said, I've been working directly with Director Lewis about that. And one of the things that we discussed is having we've we've got a memo that outlines exactly what the city's, usage is, that it is less than the county.
It's the same product the county uses. And, the specific reason for why it looks different on from one road to the next, or from one town to the next on Castle Pines Parkway, as it turns into monarch, has more to do with the width of the road than anything else, and how far you have to push the snow and the snow accumulates in there happens to be some salt in it.
That being said, you know, no one wants the landscape to look poor and everybody would prefer a solution. So we'll continue to work on that. But we are using less than the recommended rate. The biggest issue is to ensure that the hilly and curvy areas are clear and safe, especially when we have to have kids brought to school on that road.
So it's a balance. And like I said, we'll continue to work on that with you.
Describer:
Camera pans back the to board after Deborah finishes.
David:
Very good. Thank you, Chris, and Thank you. Councilwoman Mulvey. Hearing no other public comments, I'm going to close the public comment, period. Item #11 on our agenda. And unless the Directors have something more they want to address this evening, I would ask for one of them to, make a motion to adjourn.
Board Voting All Speak:
I'd like to make a motion to adjourn the meeting at 7:15 on the 15th. A second it. I have a motion, from Director Lowen to adjourn a second by Director Lewis. I can see an applause coming from Director crew and myself and the rest of those attendees. I'll take that as an approved vote on everyone's part.
Motion is, approved unanimously. Meeting adjourned. Thank you.
Describer:
The video fades to black.